Operating cash flow

Operating Cash Flow

A ratio of a company's cash flow to either its net income or operating income. The latter ratio provides a more accurate description of a company's profit, while the former takes into account the effects of non-operation transactions on income. Operating cash flow shows the difference, if any, between a company's reported income and actual cash on hand.

The sum of these items ($99,500) represents the total amount of cash generated by the operating activities of the company for the year and is identical to the amount documented on the indirect method of documenting the cash flow from operating activities.

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